Facebook stock plummets in record one-day drop

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The company's stock plunged 20% at one point, taking Zuck's personal net worth down with it.

Zuckerberg testified before Congress earlier this year after it was revealed that political consulting firm Cambridge Analytica improperly obtained data of 87 Facebook million users. A $16 billion drop took his fortune down to $70 billion, making him the sixth richest person in the world, having previously been in third place. Three Wall Street firms, including Raymond James, have lowered their ratings on Facebook and reduced price targets since Wednesday's disappointing guidance. In the final minutes of USA trading on Wednesday, shares hit $217.50, an increase of 32 percent in the last 12 months, before slipping after the bell.

FACEBOOK Inc's scandals are finally hitting it where it hurts: growth.

User growth has flattened in the USA and Canada, key markets for the company due to the high prices ads there command. Also, while DAUs were up (against Q1 2018) in areas Facebook labels as "Asia-Pacific" and "Rest of World" it lost 3 million DAU in Europe (282 million vs 279 million) and stayed flat in the United States and Canada, at 185 million.

Investors were watching closely to see the a post-Cambridge Analytica #DeletFacebook campaign had impacted user count, but across the board Facebook's daily active users actually rose to 1.47 billion, up 11% year-on-year though still below the 1.48 billion predicted.

Facebook has shown that it can not sail forever forward while facing various storms, including Cambridge Analytica and the Russian government's use of the social media platform to sow divisions amongst Americans during the 2016 presidential campaign.

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In a research note, he said Facebook´s outlook "suggests that while the company is still growing at a fast clip, the days of 30 percent-plus growth are numbered".

Facebook has said it will increase spending to make investments in video content, and on new bets like artificial intelligence and virtual reality.

The new General Data Protection Regulation in the European Union forced several changes to Facebook's privacy terms and sign-up process. They could similarly disadvantage smaller, lesser known companies that don't have the resources to comply and which could face big fines if they don't. "In the US and Canada, Facebook's daily active users remained flat sequentially at 185 million, while the number actually fell in Europe, falling to 279 million, down from 282 million", writes Fox News. Facebook saw a decline in Europe to 279 million daily users.

Instagram has grown to 1 billion monthly users from 600 million in late 2016, while Facebook's two messaging apps, Messenger and WhatsApp have each reported well over 1 billion monthly users. The report also predicted far weaker growth in the future than had been expected.

"The company has a track record of resetting revenue growth and expense expectations only to turn around and exceed those expectations the following quarter", Munster wrote.